Tag ArchivesSuretyship
Contracts

Suretyship Agreements – What Are They?

  A suretyship agreement is defined as an agreement in terms of which a third party, namely the surety, undertakes liability towards a creditor for the proper performance of a portion of or the entire obligation of a debtor. A valid principal obligation between the creditor and debtor is essential for the validity of a […]

Read full story
Competition Amendment Act

Does a Principal Obligation need to exist prior to the conclusion of a valid Suretyship

When a Credit Loan Agreement is entered into between a Creditor and Debtor, a Surety Agreement is often concluded. A Surety Agreement involves three parties being the Creditor, the Principal Debtor and the Surety. The Surety is an individual that undertakes to bind him or herself as Co-Principal Debtor and to fulfil the obligations of […]

Read full story